9.
Cash….
Cash can be in many different forms. It can be in hard currency or a
checking account or a money market fund. Generally the maturity is less
than three months. An investor receives a stated rate of return in the form of
interest payments for lending their money. There is little to no risk in cash.
Range of returns (as of 2/15/08):
Coins and Checking Money Certificates
Treasury
Lower dollar bills account market of Deposit Higher
Bills
0% 1.0% 2.0% 3.4% 3.6%
Braver Wealth Management, Inc.

10.
Bonds….
Bonds (fixed income investments) are loans made to corporations,
municipalities and governments by investors like you and me. An investor
(the loaner) gets a stated coupon (income) every period until the last
period, where the principal is returned with the last coupon.
•Municipal bonds
•Treasury bonds
•Corporate bonds (GE, GM)
•High yield corporate bonds (aka junk bonds)
•Foreign bonds
Braver Wealth Management, Inc.

12.
Bonds….one year later
Example
One year later (1/02/08) if we value our US Treasury bond with 5% coupon,
paid semi-annually.
If market rate stays at 5%, bond price is $1,000
If market rate goes down to 3%, bond price is $1,057
If market rate goes up to 7%, bond price is $947
Braver Wealth Management, Inc.

13.
Stocks….
Stock (equity) is an ownership share of a public company. The company
that sells shares might be an American company or an international
company, and it might be a large, mid or small cap company
Your stock may or may not pay dividends. The price of your stock will
fluctuate over time based on the market’s expectations for the
company’s future earnings.
IBM MSFT
GOOG
GE
Sale of shares:
May be worth more or AMZN
GM less than amount invested
Braver Wealth Management, Inc.

16.
Primary Investment Vehicles
Mutual funds – A mutual fund is an investment company that pools
the money of many investors to buy a portfolio of securities. Each
fund generally has a specific investment goal and investment style
that it will follow. Mutual fund transactions are executed at 4:00pm.
Index funds – An index fund is a mutual fund that is designed to
track a specific market benchmark (i.e. S&P 500.) Index funds
generally are more tax efficient and less expensive than actively
managed mutual funds.
Exchange-traded funds – ETFs are similar to index funds in that
they track a benchmark, are generally inexpensive, and are tax
efficient. However, ETFs trade on exchanges like stocks so they
can be purchased intraday and are commissionable.
Braver Wealth Management, Inc.

25.
Preparing Your Taxes
- Federal and state taxes need to be filed
by the following April 15th
- You can buy a software program like
TaxCut or TurboTax (from Staples) to do
your taxes yourself … or you can go to
H&R Block for tax return preparation
- Watch your paycheck withholding to
ensure you’re not giving the US
government an interest-free loan (if you
get a refund in April, then you withheld too
much)
Braver Wealth Management, Inc.

27.
Why Save Now for Retirement?
• Value of compounding makes early
contributions especially valuable
– Example: To accumulate $1,000,000 for retirement by age 65, you’d need to save
$400 per month if you start at age 25 versus over $2,000 per month if you wait
until age 45 (assumes 7% per year growth)
• Employers often offer “free money”
matches to contributions to retirement
plans
• Because retirement costs much more than
people expect and there are no loans!
Braver Wealth Management, Inc.

28.
Where to Save for Retirement
(or “pay yourself first”)
#1 Employer 401(k) and 403(b)
– NEVER MISS A MATCH!
– Contribution limit in 2008 is $15,500
– If self-employed, then open a solo 401(k)
# 2 IRAs – Individual retirement accounts
– Contribution limit is $5,000 in 2008
– If you are in a lower bracket, Roth is typically a
better choice (no tax deduction now but money will
grow tax-free forever)
#3 Taxable investment account – set up
automatic payment account at Fidelity or
Vanguard!
Braver Wealth Management, Inc.

30.
What Insurance do you Need?
• Life Insurance – Only if you have dependents
• Disability Insurance – If employed, it can
replace up to 65% of your income if you
become disabled
• Health Insurance – ALWAYS!
• Other Important Insurance
– Home (owner or renter)
– Automobile (required)
– Umbrella (only if significant assets to protect)
Braver Wealth Management, Inc.

34.
Estate planning:
Which documents do you really need?
• Will – specifies who will inherit your property, names
executor for your estate and guardian for your
children
• Living will – indicates which medical measures you
want taken if you are incapacitated
• Health care proxy – designates person to guide
medical treatment if you are incapacitated
• Durable power of attorney – designates person to
make financial and legal decisions if you are
incapacitated
Braver Wealth Management, Inc.